Daily Holding Cost
It is what you pay every day just to own the flip property before it sells — the clock that eats profit.
Formal definition
Daily holding cost equals monthly interest, insurance, utilities, and other carry costs divided by 30 (or days in month).
Why it matters
Flippers watch daily carry because a two-week delay can cost more than a major rehab line item.
Where you see it
- Hard-money lender draw schedules
- Flip profit calculators
- Real estate investor spreadsheets
- House-flipping courses
- Private lender underwriting
Worked example
- Monthly interest + insurance + utilities: $2,400.
- Daily holding = $2,400 ÷ 30 = $80/day.
- Interpretation: Every extra week unsold costs about $560 in carry alone.
How Business metrics calculates it
Period holding costs ÷ days in the hold (as entered).
Where people fool themselves
Daily hold that omits interest because “it’s on the loan” still accrues. If the project slips, that day is real.
Run it on your own numbers: the Fix & Flip calculator.